MADRID | May 29, 2015 | By Miguel Navascués | Fortunately the case against the the preponderance of finances over the rest of the economy is gaining traction, as I recently argued here. As usual, FT’s Martin Wolf hits the mark.
Barclays | The ECB’s April data on monetary aggregates and bank balance sheets show a surge in money growth, but bank lending dynamics is still subdued and the annual growth rate of loans to the private sector (adjusted for sales and securitisations) remained at 0.8%
Iris Mir | China continues to struggle to avoid being swallowed by the challenges that stifle its stagnant economy while developing a new monetary policy. The IMF applauded the steps taken so far and no longer considers the RMB an undervalued currency. However China remains too cautious in its monetary reforms. Risking the country’s ambitions of further internationalize the RMB and the joining of IMF’s cherished Special Drawing Rights Basket.
BEIJING | May 27, 2015 | By Caixin Editorial Team | Emerging economies have been bracing themselves for a rise in U.S. interest rates. Last week, the release of the minutes of the Federal Reserve’s policy meeting in April sparked another round of speculation about when the rate hike might begin. Most now expect a start date in December, rather than September.
LONDON | May 27, 2015 | Barclays | Even if a last-minute agreement was negotiated on a technical level, the implied U-turn on election promises would likely push the Greek government into some sort of political crisis, forcing a change in the current set up.
May 25, 2015 | By Benjamin Cole via Marcus Nunes‘Historinhas | The International Monetary Fund on May 22 badgered the Bank of Japan to adopt a more aggressive growth stance, even though the island nation posted Q1 real GDP growth of 2.4%, and an annual inflation rate of 2.3%—along with an unemployment rate of 3.4%.
BEIJING | May 24, 2015 | By Zhang Yuzhe, Huo Kan and Xing Yun via Caixin | A bond program that takes aim at China’s local government debt problem could raise 1 trillion yuan, yet cut creditor yields.
The Corner | May 22, 2015 | Three main market drivers to watch today: German IFO confidence index, which is expected to disappoint following the ZEW steps; a lower US inflation, far from the Fed’s 2% target –which would serve as a catalyst so that the bags are listed the lack of arguments to raise interest rates this year. Besides, Mario Draghi could address the unemploment issue.
The Corner | May 20, 2015 | Monetary policy issues will not be adresses at the ECB’s Governing Council meeting today. However, markets will be very attentive to comments that individual members make, especially given the impact of Coeuré and Noyer’s words on Tuesday (the euro fell against other currencies and European stocks rallyied on ECB bond comments).
May 18, 2015 | UBS | Q1 reporting season is roughly 75% complete and the European cycle keeps rolling on with FX and a domestic recovery feeding through.